Quoted from kpg:I have found quality service with exceptional product offerings is what keeps me successful and in business, not the lowest accepted quality products and service possible to maximize my profits.
I think most businesses want to maximize their profits, but there is a balance between profit versus quality of the product, service, etc..
Not enough profit and the business doesn't survive. Too crappy a product or service and the business doesn't survive. There's a huge grey area between those two extremes.
If you offer a product and in a couple of days everything sells out and people start offering your product on the secondary market at a substantial price increase, wouldn't you think maybe you're not charging enough? Or maybe you didn't need to put as much into it?
Keep in mind, the product sells out even though you have a reputation for releasing a product with unfinished code and hardware that may not have all the kinks completely worked.
Edit: Removed "Reality" answer to KPG's question since TheLaw already provided it.